CRB Financial Regulations & Compliance 2 — Questions and Answers
Question 1: Under the Bank Secrecy Act, what is the threshold amount for filing a Currency Transaction Report (CTR)?
- $5,000
- $10,000 (Correct answer)
- $25,000
- $50,000
Correct answer: $10,000
The BSA requires financial institutions to file a CTR for any cash transaction exceeding $10,000 in a single business day.
Question 2: Which regulation implements the Truth in Savings Act and requires disclosure of deposit account terms?
- Regulation E
- Regulation CC
- Regulation DD (Correct answer)
- Regulation Z
Correct answer: Regulation DD
Regulation DD implements the Truth in Savings Act, requiring clear disclosure of interest rates, fees, and terms for consumer deposit accounts.
Question 3: A customer deposits $9,500 on Monday and $1,000 on Tuesday at the same branch. What BSA obligation may apply?
- No reporting required since neither transaction exceeded $10,000
- File a CTR because the two-day aggregate exceeds $10,000
- File a SAR only if the teller suspects structuring (Correct answer)
- File both a CTR and a SAR automatically
Correct answer: File a SAR only if the teller suspects structuring
If a bank suspects the customer is structuring transactions to avoid CTR reporting, it must file a Suspicious Activity Report (SAR).
Question 4: The Gramm-Leach-Bliley Act primarily requires financial institutions to:
- Report suspicious transactions to FinCEN
- Provide customers with privacy notices and opt-out rights (Correct answer)
- Maintain minimum capital reserve ratios
- Verify customer identity before opening accounts
Correct answer: Provide customers with privacy notices and opt-out rights
GLBA requires financial institutions to give customers privacy notices explaining data-sharing practices and provide opt-out options for sharing with non-affiliated third parties.
Question 5: Which federal agency is primarily responsible for enforcing consumer protection laws at national banks?
- Federal Reserve Board
- FDIC
- Office of the Comptroller of the Currency (OCC)
- Consumer Financial Protection Bureau (CFPB) (Correct answer)
Correct answer: Consumer Financial Protection Bureau (CFPB)
The CFPB has primary authority for enforcing federal consumer financial protection laws across most large banks and financial institutions.
Question 6: Under Regulation E, how many business days does a bank generally have to investigate an electronic funds transfer error after receiving customer notice?
- 3 business days
- 5 business days
- 10 business days (Correct answer)
- 30 business days
Correct answer: 10 business days
Under Regulation E, banks generally have 10 business days to investigate an EFT error complaint, or may extend to 45 days if a provisional credit is provided.
Question 7: What does the term 'know your customer' (KYC) primarily require banks to do?
- Memorize customer account numbers for faster service
- Verify customer identity and assess potential money laundering risks (Correct answer)
- Call customers monthly to confirm account activity
- Require customers to visit branches in person annually
Correct answer: Verify customer identity and assess potential money laundering risks
KYC requires banks to verify customer identities, understand the nature of their business, and assess money laundering and terrorist financing risks.
CRB Financial Regulations & Compliance 2
Under the Bank Secrecy Act, what is the threshold amount for filing a Currency Transaction Report (CTR)?